Google Reportedly Contemplating Designing And Using Its Own Chips

In what could end up being a blow to Intel, Google is contemplating both designing and using its own server processors, according to a source who spoke to the folks at Bloomberg. There would be several benefits for the Internet giant if it decides to undertake such efforts, particularly the control offered over the crossroads betwixt software and hardware. Nothing has been set in stone, however, and the source says plans could end up changing.

The source is a person said to be familiar with the matter, which is presently being kept private behind the walls of Google. Presently, the company falls in line as Intel's fifth biggest customer, making up more than 4-percent of the company's revenue and representing a hefty chunk of its business. Should Google begin designing and using its own chips, Intel could suffer a large blow.

According to this source, Google's design would end up using ARM technology. More pertinent details about what is planned weren't revealed, but Intel's stocks did stuff a blow following the news, dropping a hair over 3-percent to $24.47. As pointed out by Bloomberg, Google has recently been spotted shopping around a job position for a "digital design engineer," which seems to lend the source a bit of anecdotal confirmation.

Neither Intel nor ARM have commented on the matter, but Google wasn't entirely mum when approached. Said a Google spokeswoman, Liz Markman, to Bloomberg: "We are actively engaged in designing the world's best infrastructure. This includes both hardware design (at all levels) and software design."

SOURCE: Bloomberg